Sounds Too Good to be True? It Probably Is: How to Avoid Investment Scams
In these sensitive economic times it seems like everyone is searching for ways to increase their capital — especially con artists.
If you are thinking of investing your savings, take a look at these tips to avoid being scammed.
Investing your money usually comes with some amount of risk. If you receive false promises of ‘no risks’ or even ‘low risks’ be wary.
The best thing to do in this situation is to ask lots of questions. If the person you are talking to gets frustrated that is one sign they could be pushing a scam. People who work professionally with investors are used to questions and should be more than accommodating when working with you.
‘Limited Time Offer!’
Scammers are going to rush you. They do not want you taking the time to think over whether or not investing your money with them is a good idea. They may also use the excuse that there is a “limited supply” of opportunity to invest. If you feel pressured to make a decision quickly, don’t.
‘John Smith Got His Start This Way!’
Do you know John Smith? Neither do we. Scammers will constantly try to use false testimonials to make you believe everyone else has profited from their investment opportunities. Other people — in this case — should not matter. What matters is if this is the right investment for you.
‘Be the First to ____!’
On the opposite spectrum of the above tip, if no one else has invested with them before that should also raise suspicion. Con artists will try to promote their new product to you, but may have difficulty explaining exactly what it is. Complexity is a tool often used to scam investors.
Remember: You can never ask too many questions.
Get it in Writing
The answer should always be yes. This may seem like a pretty obvious tip, but you will find that swindlers will come up with any and every excuse to get out of presenting paperwork. Make sure you have information on the institution and you have appropriate paperwork to back up your investment.
Finally, trust your gut. If something seems off, it probably is. There is never a shortage of investment opportunities. If one is not a good fit, there will be another investment right around the corner.
For more information check out this article from NYDailyNews.com.